Micron Forecast Fails to Satisfy Investors After AI-Fueled Rally

Core Viewpoint - Micron Technology Inc. shares declined despite a generally positive forecast, highlighting Wall Street's high expectations following a significant stock rally this year [1][3]. Financial Performance - Fiscal first-quarter revenue is projected to be approximately $12.5 billion, surpassing analysts' average estimate of $11.9 billion, with some predictions reaching as high as $13 billion [2]. - The company expects earnings of about $3.75 per share, exceeding the projection of $3.05 [2]. - In the fiscal fourth quarter, sales increased by 46% to $11.3 billion, compared to an estimated $11.2 billion, with earnings of $3.03 per share against an average prediction of $2.84 [4]. Market Position and Outlook - Micron's stock has nearly doubled this year, driven by optimism related to AI, outperforming most chip peers [3]. - The company is positioned as a key beneficiary of AI spending, with its high-bandwidth memory (HBM) being critical for AI model development [3][4]. - Micron's CEO stated that the company is entering fiscal 2026 with strong momentum and a competitive portfolio, emphasizing its unique position as the only US-based memory manufacturer [4]. Supply and Demand Dynamics - Micron anticipates that the supply of memory chips will remain tight into the next year, driven by strong demand for data center equipment and AI-related storage chips, particularly Nand flash [5]. - The company plans to increase spending to respond to market strength, having invested $13.8 billion in new plants and equipment in fiscal 2025, with expectations to invest even more in the current financial year [6].